Question 1

Nathan owns a bakery that bakes only cakes.All of his bakers work 8 hours per day.In 2006,he employed 5 bakers and they produced 200 cakes each day.In 2007,he employed 6 bakers and they produced 249 cakes each day.In Nathan's bakery,productivity

Accepted Answer

To calculate productivity, we need to divide the total number of cakes produced by the total number of hours worked. In 2006, the bakery produced 200 cakes per day with 5 bakers working 8 hours each, for a total of 5 x 8 = 40 bakers hours. In one day, the productivity was 200/40 = 5 cakes per baker hour. In 2007, the bakery produced 249 cakes per day with 6 bakers working 8 hours each, for a total of 6 x 8 = 48 bakers hours. In one day, the productivity was 249/48 = 5.1875 cakes per baker hour. The percentage increase in productivity between 2006 and 2007 is (5.1875- 5)/5 x 100% = 3.75%. Therefore, the answer is C - the productivity increased by 3.75% between 2006 and 2007.

Question 2

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Accepted Answer

The answer of Last year a country had 800 workers...

Question 3

Real Foods produced 400,000 cans of diced tomatoes in 2007 and 460,000 cans of diced tomatoes in 2008.They employed the same number of labor hours each year.Relative to their productivity in 2007,their productivity in 2008 was

Accepted Answer

The answer of Real Foods produced 400,000 cans of diced...

Question 4

Productivity is the

Accepted Answer

Productivity is the key determinant of living standards because it determines the amount of output that can be produced with a given amount of inputs. When productivity increases, output per worker increases, leading to higher wages and higher living standards. Additionally, growth in productivity is the key determinant of growth in living standards because it allows for more goods and services to be produced with the same amount of resources, leading to higher standards of living over time.

Question 5

Consider two countries.Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Accepted Answer

The answer of Consider two countries.Country A has a population...

Question 6

A barber shop produces 96 haircuts a day.Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour.If the shop's productivity is 3 haircuts per hour of labor,then how many barbers does the shop employ?

Accepted Answer

The shop produces 96 haircuts a day at a rate of 3 haircuts per hour. Therefore, the total hours of labor needed is 96 / 3 = 32 hours. Since each barber works 8 hours a day, the shop employs 32 / 8 = 4 barbers.

Question 7

Both Tom and Jerry work 10 hours a day.Tom can produce six baskets of goods per hour while Jerry can produce four baskets of the same goods per hour.It follows that Tom's

Accepted Answer

Since Tom can produce 6 baskets of goods per hour while Jerry can only produce 4 baskets of the same goods per hour, it follows that Tom's productivity and output are greater than Jerry's. Therefore, option A and option B are correct. However, we cannot infer anything about Tom and Jerry's standard of living based solely on their productivity and output, so option C is incorrect.

Question 8

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Accepted Answer

The answer of Workland has a population of 10,000,of whom...

Question 9

You and your friend work together for 4 hours to produce a total of 12 futons.What is productivity?

Accepted Answer

The answer of You and your friend work together for...

Question 10

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Accepted Answer

Productivity is calculated as output per hour. In 2004, productivity was 500 units/hour (5,000,000 units / 10,000 hours). In 2005, productivity was 600 units/hour (4,800,000 units / 8,000 hours). The increase in productivity is (600 - 500) / 500 = 0.20 or 20%.

Question 11

In 8 hours,Sonja produces 8 units of goods and services.In 10 hours,Emma produces 9 units of goods and services.It follows that

Accepted Answer

Sonja produces 1 unit of goods and services per hour (8/8=1) while Emma produces 0.9 units per hour (9/10=0.9), thus Sonja's productivity is higher than Emma's. The other options cannot be determined from the given information.

Question 12

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

The answer of Waldo works eight hours and produces 7...

Question 13

In 2007,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2008,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Between 2007 and 2008,productivity at Modern Electronics

Accepted Answer

The answer of In 2007,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each...

Question 14

Which of the following statements is true?

Accepted Answer

While productivity is calculated as output produced per hour worked, the statement in option A is reversed. Option C is incorrect as market prices can fluctuate due to various factors and do not necessarily indicate scarcity over time. Option B is true as productivity is a major factor in determining a country's standard of living, and higher productivity can lead to higher wages and overall better economic outcomes.

Question 15

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

The answer of Mary looks over reports on four of...

Question 16

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was

Accepted Answer

To find the real GDP of each country, we use the formula:
real GDP = population x productivity x average hours worked per day
For country A: real GDP = 1,000 x 2.5 x 8 x 365 = $7,300,000
For country B: real GDP = 800 x 3.0 x 8 x 365 = $7,420,800

Therefore, country B has the higher real GDP.

To find the real GDP per person of each country, we use the formula:
real GDP per person = real GDP / population

For country A: real GDP per person = $7,300,000 / 1,000 = $7,300
For country B: real GDP per person = $7,420,800 / 800 = $9,276

Therefore, country B has the higher real GDP per person.

Question 17

Which of the following is not correct?

Accepted Answer

Higher output growth per person typically requires higher productivity growth.

Question 18

In 2007,Angel Foods produced 300,000 bags of tortilla chips,employing 12,000 hours of labor.In 2008,Angel Foods produced 325,000 bags of tortilla chips,employing 13,000 hours of labor.Relative to their productivity in 2007,their productivity in 2008

Accepted Answer

The answer of In 2007,Angel Foods produced 300,000 bags of...

Question 19

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was their productivity?

Accepted Answer

Productivity is calculated as output divided by input. Here, the output is 40 cabinets and the input is 320 hours of labor. Therefore, productivity is 40 cabinets / 320 hours = 1/8 cabinet per hour.

Question 20

Cedar Valley Furniture uses 5 workers,each working 8 hours,to produce 80 rocking chairs.What is the productivity of these workers?

Accepted Answer

The productivity is calculated as total output divided by total input. Here, 80 chairs are produced in 40 hours (5 workers x 8 hours), so productivity is 80/40 = 2 chairs per hour.

Quiz 25: Production and Growth